Beware — Debt Collectors Have A New Strategy

by DeLadurantey Law Office, LLC on June 17, 2014

If you are struggling financially and you have fallen behind on your bills, you are probably feeling harassed by debt collectors. It is now being reported that the collection industry has a new strategy – collectors are filing lawsuits against consumers because they believe they won’t appear in court to defend themselves.

If you do not appear in court, the result can be disastrous. The judge could erroneously allow a garnishment against you, put a lien on your home, or even a repossession of your assets. Unless you are there to present all the facts surrounding your case, the court won’t get the full story. You could even have a judgment rendered against you for a debt you do not owe!

Why don’t people show up for court? There are a variety of reasons, but in many cases they were not properly served with notice of the lawsuit, so they were not aware they were being sued. Other times the person being sued doesn’t understand that he/she has valid defenses for fighting the lawsuit. The debt may be expired and uncollectible, it may not be your debt, or many other possible defenses exist.

Debt collectors justify their strategy by saying there must be consequences when consumers default on their payments. Without repercussions, the costs to borrow money for everyone would increase. Thus, they claim it is sometimes necessary to file lawsuits when other collection methods have failed.

While a federal law called the Fair Debt Collection Practices Act makes it illegal for debt collectors to use harassing or abusive collection tactics, the Federal Trade Commission (FTC) reports that it receives more consumer complaints about the industry than any other. If you have debt collectors harassing you or pursuing a lawsuit against you, it is important to understand all of your legal options. Call us today to schedule an appointment.

At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in student loan law and defending a foreclosure action. Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you. Like us on Facebook.